Few charges surprise shippers more than demurrage and detention. They look similar but cover different things — and together they can dwarf your freight cost if you are not careful.
Demurrage vs detention
| Demurrage | Detention | |
|---|---|---|
| What it charges for | Container sitting inside the terminal beyond free days | Container kept outside the terminal (at your site) beyond free days |
| Typical trigger | Slow customs clearance or pickup | Slow unloading and return of the empty |
| Who charges it | Port/terminal (via the line) | Shipping line |
In short: demurrage is for time at the port; detention is for time with the box away from the port. Some carriers combine them as "demurrage & detention" with a shared free-time allowance.
Why they add up so fast
Free time is usually only a handful of days. After that, charges are billed per container, per day, often on a rising scale — so a week's delay on several containers becomes a serious bill.
How to avoid them
- Prepare and submit customs documents before the vessel arrives.
- Arrange trucking and unloading in advance so containers move immediately.
- Negotiate longer free time with the carrier for regular lanes.
- Return empties promptly and get proof of return.
- Use a forwarder who tracks free-time clocks and warns you before charges start.
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